Forex Bullet Proof Review & Live Testing

[Simon]

ForexBulletProof is the latest (and hopefully greatest) EA from the guys who brought you FAPTurbo.

We understand that this EA is designed to slowly and steadily grow an account month after month.

After the hype of FAPTurbo, we are pleased to see that the guys are making more sensible claims with this EA.

ForexBulletproof trades on two currency pairs - EURUSD and USDJPY - and we are excited to see how it will perform.

Colleen will start testing this EA on Monday - we were lucky enough to receive a pre-launch copy from the team at Forex Bulletproof and thank them very much for assisting us in providing this test.

We hope you enjoy this new section of our Forum.

[capsmart]

Hi Simon
It is a good idea to have someone testing EA's without having to purchase them. I cannot remember how many 97$ I paid for not working robots so far.
So far the only robot that worked for me is Megadroid.
I am also using 4xCashCompounder as a tool. This is a martingale system that because of low volatility I turned off for August and will restart it in September.
The problem with EA's is that it takes time to have a good record. One or two weeks is not enough and usually after a month all you get from the supplier are emails promoting new robots.

[Simon]

Hi Capsmart, hope all is well with you.

Totally agree with you - which is exactly why we have launched this section.

Being VERY sceptical of EA trading (you possibly know I have spent the last three years trying to develop a long-term profitable EA!), I have to say that the quality is improving.

The EAs I've been developing have all been trading "properly" - i.e. stops of around 40-60 pips maximum and 1:2 Risk:Reward at a minimum. I can easily make an EA now that trades well for a whole year, it's getting the long-term (3-5 years) profit that is the problem.

On the other hand, scalping EAs do tend to make money over long term - but it's the knowledge of a bad run that puts me off - losing several months of profits in a couple of trades is a bit silly to say the least....

My theory that scalping will be the only type of automated trading that will work long-term is backed up by the fact that High Frequency Trading now accounts for so much of trading by hedge funds and banks like Goldman Sachs. You can read more about this here - High-frequency trading - Wikipedia, the free encyclopedia

Anyway, we hope to test around 4 EAs to get us started and hopefully one or two of them will do well with Colleen at the helm.

[Colleen]

Hello Capsmart and Simon,

I am happy to be in here testing EA's to see how things work with them. And I do hope to find something of value for folks to consider whether or not to also invest in the latest Holy Grail bot we see advertised each week now isn't it? The Inbox Spam on our emails is very annoying actually...

I too have purchased so many of those $97 bots and I admit that my main portfolio favours the Megadroid bots... Megadroid 1.21 being my FAVOURITE! I am not so sure about the recent Upgraded 1.30 version though - I've regressed back to my 1.21 version hoping to see in Demo if the 1.30 can rectify it's dismal performance last week on my Live MIG account... those trades were not in the best entry positions in my humble opinion... Megadroid Support claims "The last update (1.30) is developed specially for current market conditions, try to run EA for a longer period, to achieve good results." Time will Tell on how this 1.30 version ticks...

Martingale systems - definitely do need to be sufficiently funded and it is wise that because of low volatility you turned off for August and will restart it in September.

And I think all Traders these days are being VERY sceptical of EA trading and I did not know that Simon has spent the last three years trying to develop a long-term profitable EA! Keep working on that project Simon and let us know when that's ready... Take your time to find the right parameters and we'll be waiting...

Anyhow, we're going to look at a few eas to start and this thread is dedicated Forex Bulletproof - And I thank the team at Forex Bulletproof for providing us with a pre-launch copy to work with here...

Looking forward to some "Positive Pips" trading with this ea...

Cheers,

Colleen

[capsmart]

Welcome Colleen,
I am looking forward to see the results from the ea's.

I think the reason banks use ea's for scalping is because computers in theory could analyze fast market conditions and act very rapidly.
If you trade on a 4h or daily you have plenty of time to do the analysis that in my opinion a good trader can do better than any computer.

[Simon]

Hi Capsmart,

Yes, you are correct regarding the High Frequency Trading. Also, look at the fact that these hedge funds and investment banks have HUGE amounts of cash - they are effectively moving the market by a couple of pips and closing the trades.

I have been looking into this myself - there are a couple of indicators doing the rounds that show you the live pending orders in millions of dollars when using ECN brokers.

Since there is no centralized exchange for Forex, I think that the best way to exploit this would be using Dukascopy during the London Session. I see they now have MT4 available, and I may research this a bit further... http://www.dukascopy.com/swiss/engli...alstation/#MT4

I was interested to read somewhere the other day that Elliot Wave analysis is not working as well this year as it has previously, I wonder if this is due to the prevalence of High Frequency Trading now? The market is effectively being manipulated in a way that was not possible previously....

Interesting info re: MegaDroid, Colleen, maybe we should start a thread on your experiences for that as well?

Re: Martingale systems, I think that is a bridge too far for my own personal risk appetite, unless I was trading with a very, very small account!

[capsmart]

One of the main reasons I gave up trading the Greek stock market and started trading forex is that I believe this market is so big that it cannot be manipulated. Yes Mr Bernanke can "manipulate" it with a statement but maybe there are no more than 50 people in the world that can affect the forex market and since most of them are Presidents, Prime ministers or Bank Governors I believe they will not do it to make a financial profit out of it.
So I really believe that a single bank or institution cannot affect price action under normal conditions and normal working hours.
Concerning the cash compounder you can use it as a tool to trade when there is volatility in the market. The problem is for every 45 pip move you open a new position. This is a parameter that can be changed but if the number is too small you will get many open positions and you risk to run out of money. If the number is too big you will need bigger moves to close the open positions. But it cannot be traded with a small account. You will run out of cash very soon.

[Simon]

Hi Capsmart,

Totally agree that other markets - especially stocks and markets like gold are being manipulated heavily.

I still believe that Forex is open to very small amounts of manipulation - it's not uncommon for hedge funds to dump millions during the Asian session and move the market due to thin liquidity.

Similarly, having played about with the ECN pending order indicator, I can see that a decent automated system could be made. The big guys can only move the market for a few seconds when it is in full swing, and is definitely worth looking into as a strategy (if you are interested in scalping, which I'm not at the moment).

Overall though, I agree with you that the Forex market is too huge to be manipulated on a massive and medium to long term scale - as you correctly say, fundamental socio-political and economic news has too much influence on the markets.

I am sure the likes of Goldman Sachs will try and find a way though!

[capsmart]

Simon,
It is cheaper for banks and funds to buy politicians and impose their views instead of dumping money in a market.
In case you did not notice it is what they do for the last 200 years and particularly the last 5 years.
The good thing for us is that even in that case there are different tendencies.

[Simon]

Hi everyone,

I'm sure you have all had an enjoyable afternoon being spammed about this EA.

It's now available.

We have it on our VPS and it has yet to trade - Forex High Voltage (that also comes with it) is currently $12 in profit on a $10k account.

I'll put a link up to our MT4stats page when we have a bit more activity.